Dáil Éireann Debate, Tuesday - 10 October 2023
531. Deputy Steven Matthews asked the Minister for Health if his attention has been drawn to proposed changes for January 2024 in the way the Revenue Commissioners treat general medical services income within general practitioner partnerships; if he is concerned that this will impact the number of GPs operating; and if he will make a statement on the matter. [43811/23]
View answer553. Deputy Bríd Smith asked the Minister for Health if he, his Department and the HSE are aware of proposals to change the tax treatment of GMS income for GP partnerships (details supplied); if he or his Department was consulted on these proposed changes; if the HSE has examined the potential impact of these changes to the provision of GP care; and if he will make a statement on the matter. [43974/23]
View answer574. Deputy David Cullinane asked the Minister for Health if he has had any engagement with the Minister for Finance or the Revenue Commissioners regarding plans to prohibit GMS income being mandated to partnerships or employers, meaning that any GMS income will need to be declared as income by the individual GMS list holder in their tax return from January 2024; and if he will make a statement on the matter. [44076/23]
View answerI propose to take Questions Nos. 531, 553 and 574 together.
The collection of taxes and issues relating to the interpretation of tax law are a matter for the Revenue Commissioners. However, I am aware of the concerns raised regarding new guidance to be issued shortly by the Revenue Commissioners regarding the tax treatment of GP's GMS income.
Officials from my Department ard the HSE have engaged with the Office of the Revenue Commissioners and the Department of Finance to understand the context of the new guidance and to identify the potential operational issues which may arise following its publication.
Importantly, the guidance does not reflect a change in tax law, but clarifies how GPs’ GMS income should be treated for the purposes of tax under current tax law. To assist GPs and GP practices in complying with their obligations under tax legislation, Revenue will publish detailed guidance shortly. This will supplement the guidance issued to tax practitioners, through the Tax Administration Liaison Committee, in July of this year clarifying the correct tax treatment of GMS income. To allow GPs and GP practices time to make any necessary adjustments to their arrangements to ensure compliance with applicable tax policy and legislation, Revenue have implemented transitional arrangements up to the end of 2023. From 1 January 2024, those GPs and GP practices should account for tax on GMS income in accordance with the legislation in this area.
My Department and the HSE are also engaged with the IMO and will remain engaged with them to address the potential operational issues raised.
The Strategic Review of General Practice, which is now underway, will examine the current contractual arrangements for the GMS, as well as other issues, and will propose measures necessary to modernise the contract.
